MPLX LP Common Units (NYSE:MPLX ) Q4 2024 Earnings Call Transcript February 4, 2025 9:30 AM ET Company Participants Kristina Kazarian - Vice President Finance and Investor Relations Maryann Mannen - President and Chief Executive Officer Kristopher Hagedorn - Executive Vice President and Chief Financial Officer Gregory Floerke - Executive Vice President and Chief Operating Officer David Heppner - Senior Vice President Shawn Lyon - Senior Vice President Logistics and Storage Conference Call Participants John Mackay - Goldman Sachs Manav Gupta - UBS Jeremy Tonet - J.P. Morgan Theresa Chen - Barclays Keith Stanley - Wolfe Research Michael Bloom - Wells Fargo Neal Dingmann - Truist Securities Neel Mitra - Bank of America Operator Welcome to the MPLX Fourth Quarter 2024 Earnings Call.
The headline numbers for MPLX LP (MPLX) give insight into how the company performed in the quarter ended December 2024, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
MPLX is well-positioned for growth as natural gas demand improves with new capacity needs driven by AI data centers. MPLX is investing $1b annually in growth capital to support mid-single-digit adjusted EBITDA growth. Though MPLX units trade at a relative premium to its peers, the units pay out an exceptionally higher dividend, yielding 7.40% on a forward basis.
MPLX LP (MPLX) concluded the recent trading session at $51.88, signifying no movement from its prior day's close.
MPLX LP is poised to benefit from increased drilling and deregulation under Former President Trump's administration, enhancing its growth initiatives and takeaway capacity. MPLX's strong financial position, consistent cash flow, and increasing distributions make it an attractive investment with a current yield of 7.48%. Despite potential risks like commodity price fluctuations and regulatory challenges, MPLX's expanding projects and reduced interest expenses bolster my bullish outlook.
MPLX is entering a golden era where midstream energy plays have reasserted their sector leadership. MPLX is well-positioned with its strategic partnership with MPC, and diversification across to the energy infra value chain. MPLX's steady cash flow growth and predictable distribution increases make it a standout performer and income generator for investors.
MPLX has arguably the most complete package of all income investments. We discuss why MPLX is such a great high-yield, high-growth investment. We also discuss the risks facing MPLX right now.
Pipeline companies tend to be excellent investments for those seeking passive income. They generate very stable revenue backed by long-term contracts and government-regulated rate structures.
In the latest trading session, MPLX LP (MPLX) closed at $48.52, marking no change from the previous day.
In the latest trading session, MPLX LP (MPLX) closed at $47.69, marking a +0.44% move from the previous day.
MPLX is a fast-growing midstream energy company with strong distributable cash flow and consistent excess dividend coverage, offering a 7% dividend yield. The company has two core segments, Logistics and Storage, and Gathering and Processing, both showing solid EBITDA growth. MPLX trades at an attractive 10.4X EBITDA multiplier, with the potential for revaluation to 12-13X as the company deleverages its balance sheet and grows its core operations.
Master limited partnerships (MLPs) can make great income-generating investments. These pass-through entities distribute a meaningful percentage of their cash flows to investors.